This was announced by PS Publishing in December, but their new prices have now gone into effect (even if they haven’t updated their online catalog to reflect this yet). Here is what they had to say:

“at the start of the new year, we’ll be changing our pricing structure (for existing titles and stock, as well as for new titles), but only to an exchange rate of $1.80 and, even then, only for the novellas.

So, from 1 January 2005, the prices will be:

£25/$45 for the hardcovers (instead of £25/$40)
£10/$18 for the paperbacks (instead of £10/$16)”

We’ve updated our prices accordingly on our web site. Anyone who has already placed orders for effected novellas will have the old price honored.